Mortgage Terminology for the First Time Home Buyer

Written by Dale Ronewicz

Buying a Home forrepparttar first time can be a little “nerve racking”. Mortgage terminology that brokers use everyday can leave you scratching your head or shaking your head pretending that you know what they’re talking about. Here are some mortgage terms and definitions that you”ll be hearing when shopping for a first time home buyer loan:

Adjustable-rate loans, also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates overrepparttar 147425 life ofrepparttar 147426 loan based on market conditions, butrepparttar 147427 loan agreement generally sets maximum and minimum rates. When interest rates rise, generally so do your loan payments; and when interest rates fall, your monthly payments may be lowered.

Annual percentage rate (APR) isrepparttar 147428 cost of credit expressed as a yearly rate. The APR includesrepparttar 147429 interest rate, points, broker fees, and certain other credit charges thatrepparttar 147430 borrower is required to pay.

Conventional loans are mortgage loans other than those insured or guaranteed by a government agency such asrepparttar 147431 FHA (Federal Housing Administration),repparttar 147432 VA (Veterans Administration), orrepparttar 147433 Rural Development Services (formerly know as Farmers Home Administration, or FmHA).

Escrow isrepparttar 147434 holding of money or documents by a neutral third party prior to closing. It can also be an account held byrepparttar 147435 lender (or servicer) into which a homeowner pays money for taxes and insurance.

Fixed-rate loans generally have repayment terms of 15, 20, or 30 years. Bothrepparttar 147436 interest rate andrepparttar 147437 monthly payments (for principal and interest) stayrepparttar 147438 same duringrepparttar 147439 life ofrepparttar 147440 loan.

The interest rate isrepparttar 147441 cost of borrowing money expressed as a percentage rate. Interest rates can change because of market conditions. Loan origination fees are fees charged byrepparttar 147442 lender for processingrepparttar 147443 loan and are often expressed as a percentage ofrepparttar 147444 loan amount.

Adverse Credit Mortgage Loan - Persistence Is The Key To Getting Approved

Written by Carrie Reeder

People with bad credit that are looking to get a home mortgage loan or to refinance their existing home mortgage loan, know how difficult of a job it can be to try and get approved. Adverse credit history can mean a little more legwork to get an approval for a mortgage loan, and especially to get a decent interest rate.

Most mortgage brokers will tell you that if they can’t help you, no one can. That is simply not true. Every mortgage broker or mortgage lender has access to very different lending programs. A program that may be impossible for one broker can be very possible for another broker. Some mortgage brokers have access to lending companies that specialize in home mortgage loans for people with less than perfect credit that have more lenient qualifications than other sub-prime lenders do.

The key to getting approved for a home mortgage loan with poor or bad credit is persistence.

Apply with online mortgage brokers that will submit your application to multiple lenders, so that you will receive at least 4 lender offers from each application that you submit. These companies will submit your application to usually hundreds of mortgage lenders that can help you with a refinance, purchase, second mortgage or home equity loan and then remitrepparttar 4 best offers available to you. These online mortgage broker services can help people in almost every state from Florida to California.

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